Indian oilseeds, soyoil rise on weak rupee, global cues

Reuters

MUMBAI, Sept 12 (Reuters) - Indian oilseed and soyoilfutures rose on Thursday on good demand for edible oils due tothe ongoing festive season, gains in overseas markets and as therupee fell.

* Rising supplies of soybeans in spot markets and higherinventory of rapeseed capped the upside.

* Chicago soybean futures rose for a second consecutive dayon Thursday, ahead of a key U.S. government report which isexpected to forecast lower production following hot and dryweather across the country's crop belt.

* "Weak rupee and gains in the U.S. market are bolsteringsentiments," said Nalini Rao, an analyst at India Infoline Ltd.

"Indian oil millers are getting good export orders forsoymeal. Though rainfall has stopped in Madhya Pradesh, still afew traders are worried about the yield as in August the statereceived heavy rainfall," Rao said.

* A weak rupee makes edible oil imports expensive, butraises the returns of oilmeal exporters. The rupee eased onThursday after five days of gains.

* India has sold 350,000 tonnes to 400,000 tonnes ofnew-crop soymeal for shipment between October and December onprospects of higher soybean production and a weak rupee, anindustry official said last month.

* India's soymeal exports in August rose about threequarters from a month earlier as a weak rupee made shipmentsmore competitive and demand from Europe picked up.

* At 0748 GMT, the key October soybean contract wasup 0.91 percent at 3,449 rupees per 100 kg on the NationalCommodity and Derivatives Exchange.

* The key October soyoil contract rose 0.72 percentto 667.75 rupees per 10 kg, while the rapeseed contract forOctober edged up 0.63 percent to 3,542 rupees per 100kg.

* At the Indore spot market in Madhya Pradesh, soyoil was up3.70 rupees at 676.45 rupees per 10 kg, while soybeans rose 42rupees to 3,567 rupees per 100 kg. At Jaipur in Rajasthan,rapeseed edged up 30 rupees to 3,630 rupees. (Reporting by Rajendra Jadhav; Editing by Anupama Dwivedi)

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